National Jeweler Network

Financial Reporting

Q3 jewelry sales slow for HSN

November 07, 2013

St. Petersburg, Fla.—HSN Inc., the parent company of on-air and online retailer HSN, reported Wednesday that the retailer’s sales were flat in the third quarter, with jewelry cited as one of the weakest sellers.

HSN’s sales for the three months ended Sept. 30 totaled $538.6 million compared with $537.4 million in the prior-year period. The company said sales grew in home design and household but those gains were offset by lower sales in jewelry, apparel and accessories, and culinary.

Online sales were up 7 percent and increased to 37 percent of the company’s total sales, up from 35 percent in the prior-year period.

HSN’s gross profit dropped 3 percent from $191.8 million to $186.2 million.

The average price point fell 5 percent from $58.74 to $55.70 while gross margin declined from 35.7 percent to 34.6 percent.

As a whole, HSN Inc. reported 3 percent bump in third quarter sales, increasing from $778.8 million to $798.9 million. Gross profit was up 1 percent from $285.5 million to $288.6 million.

In addition to HSN, which sells online and on-air with jewelry brands including India Hicks, Kendra Bridelle and Jane Taylor, HSN Inc. operates a company called Cornerstone, which is comprised of a group of home and apparel lifestyle brands selling via catalog, online and through 11 retail and outlet stores.

In commenting on the company as a whole, CEO Mindy Grossman said, “HSNi has built a powerful and diverse portfolio of brands and products enabling us to capitalize on consumer trends, manage marketplace dynamics and position the company for long-term success.”

She said in the third quarter, the company experienced record customer levels and an increase in digital sales including in mobile, which now accounts for 12 percent of the company’s total business.